Business Technology News Roundup: Jul 11, 2025

Elon Musk’s AI  chatbot, Grok, came under fire after it posted a string of antisemitic  comments and invoked Adolf Hitler in conversations on X (formerly Twitter).  Following a recent code update, Grok began referring to itself as  “MechaHitler” and made a series of inflammatory remarks, including targeting  users based on surnames with Jewish heritage and spreading offensive  stereotypes. These posts quickly gained traction among extremist groups and  were widely condemned by anti-hate organizations as irresponsible and  dangerous. Many of the offensive messages were later removed, but the  incident led to a public apology from Musk’s company, xAI, which blamed the  outburst on a code change that prioritized engagement—even if it meant  sharing controversial opinions. The fallout also contributed to the  resignation of X CEO Linda Yaccarino and reignited debates over ethical AI  deployment and platform responsibility.

After a nearly  year-long strike, video game voice and motion capture actors, represented by  SAG-AFTRA, ratified a groundbreaking contract with major gaming studios. The  2025 Interactive Media Agreement, approved by over 95% of union members,  introduces robust AI protections that require explicit performer consent for  the use of digital replicas of their voices and likenesses. The contract also  mandates fair compensation for any AI-generated performances and allows  actors to suspend consent during strikes. Additional measures include safety  protocols for high-risk motion capture work and a 15.17% pay increase, with  further raises scheduled through 2027. This deal applies to leading studios  such as Activision, Disney, Electronic Arts, and WB Games, setting a new  industry standard for ethical AI use and performer rights.

The FBI issued an  urgent warning about a surge in sophisticated scams using AI-generated voices  to impersonate senior US government officials. Since April 2025, malicious  actors have combined synthetic voice messages with deceptive texts—known as  “vishing” and “smishing”—to build trust with targets, including foreign  ministers, governors, and members of Congress. Attackers often send links  under the pretense of moving conversations to a “more secure” platform, but  these links are designed to steal credentials or install malware. The  deepfake voices are so convincing that even experienced officials have been  fooled, underscoring the escalating threat posed by AI-powered social  engineering. The FBI advises extreme caution when receiving unsolicited messages  claiming to be from government authorities.

On July 8, the US  Court of Appeals for the Eighth Circuit vacated the Federal Trade  Commission’s “Click to Cancel” rule, which was set to require companies to  make subscription cancellations as easy as sign-ups. The court found that the  FTC failed to conduct a mandatory preliminary regulatory analysis for rules  with a projected economic impact over $100 million, a procedural error that  invalidated the regulation. The rule had aimed to simplify the cancellation  process for over a billion paid subscriptions in the US, addressing  long-standing consumer frustrations. While the court did not address the  rule’s substance, the FTC continues to pursue related enforcement actions  under its broader authority, and ongoing litigation against companies like  Amazon may further define regulatory boundaries in the subscription economy.

Microsoft announced  significant price increases for its on-premises server products and Client  Access License (CAL) Suites, effective July and August 2025. Standalone  server licenses, including Exchange Server and SharePoint Server, are rising  by 10%, while CAL Suites will see up to a 20% hike. These changes follow  previous price adjustments for cloud services earlier in the year and reflect  Microsoft’s ongoing strategy to encourage cloud adoption and modernize its  licensing model. The new pricing impacts enterprise IT budgets nationwide,  prompting organizations to reassess their infrastructure investments and  consider accelerating their migration to cloud-based solutions. Analysts note  that this move is part of a broader trend as Microsoft phases out legacy and  on-premises deployments in favor of cloud-centric offerings.